DoD's $21M chemical manufacturing contract awarded to Calca Solutions, LLC, with 501 days duration

Contract Overview

Contract Amount: $20,996,145 ($21.0M)

Contractor: Calca Solutions, LLC

Awarding Agency: Department of Defense

Start Date: 2024-05-06

End Date: 2025-09-19

Contract Duration: 501 days

Daily Burn Rate: $41.9K/day

Competition Type: COMPETED UNDER SAP

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 8510614632!BULK HPH STORAGE

Place of Performance

Location: ALPHARETTA, FORSYTH County, GEORGIA, 30004

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $21.0 million to CALCA SOLUTIONS, LLC for work described as: 8510614632!BULK HPH STORAGE Key points: 1. Value for money appears fair given the fixed-price nature and duration, though specific performance metrics are not detailed. 2. Competition dynamics indicate a competed contract under SAP, suggesting a streamlined but potentially less broad bidding process. 3. Risk indicators include the firm-fixed-price structure which shifts risk to the contractor, but potential supply chain disruptions are a concern. 4. Performance context is limited to the delivery order type and fixed-price terms. 5. Sector positioning is within basic inorganic chemical manufacturing, a critical but often overlooked component of defense logistics. 6. The contract's value is moderate within the broader defense procurement landscape.

Value Assessment

Rating: fair

The contract's total value is approximately $21 million over a 501-day period. Without detailed performance metrics or a breakdown of the specific chemicals and quantities, a precise value-for-money assessment is challenging. However, the firm-fixed-price structure generally aims to control costs by placing the financial risk on the contractor. Benchmarking against similar inorganic chemical supply contracts within the DoD would provide a clearer picture of whether this pricing is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under SAP (Simplified Acquisition Procedures), which is typically used for purchases below the simplified acquisition threshold. While this indicates competition, it may not represent the full breadth of potential bidders that a full and open competition might attract. The number of bidders is not specified, but the use of SAP suggests a more streamlined procurement process.

Taxpayer Impact: Using SAP for this contract value suggests an effort to expedite procurement, which can be beneficial for taxpayers by reducing administrative overhead. However, it's important to ensure that the competition, even if streamlined, yielded the best possible price and value.

Public Impact

The Department of Defense is the primary beneficiary, receiving essential chemical supplies for its operations. Services delivered include the provision of basic inorganic chemicals, crucial for various military logistics and maintenance functions. The geographic impact is primarily within the United States, supporting defense readiness. Workforce implications are likely within the chemical manufacturing sector, supporting jobs at Calca Solutions, LLC and its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions impacting delivery timelines.
Limited transparency on the specific types and quantities of chemicals procured.
Reliance on a single awardee for a critical component of defense logistics.

Positive Signals

Firm-fixed-price contract shifts cost overrun risk to the contractor.
Awarded under a competed procedure, indicating some level of market vetting.
Contract duration provides a degree of supply stability for the specified period.

Sector Analysis

The contract falls under the 'Other Basic Inorganic Chemical Manufacturing' sector (NAICS 325180). This sector is vital for numerous industrial processes, including defense applications. The market size for such chemicals is substantial, with significant government procurement activity. This contract represents a moderate-sized award within the broader landscape of chemical supply to the federal government, fitting into the Defense Logistics Agency's mission to provide logistical support to the armed forces.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific contract. Therefore, there are no direct subcontracting implications mandated for small businesses through this award. The focus appears to be on securing the required chemical supplies through the most effective means, rather than specifically promoting small business engagement via this particular procurement vehicle.

Oversight & Accountability

Oversight for this contract would primarily fall under the Defense Contract Management Agency (DCMA) and the Defense Logistics Agency (DLA) contracting officers. The firm-fixed-price nature simplifies some aspects of financial oversight, focusing more on delivery and quality compliance. Transparency is generally maintained through contract databases, but specific performance monitoring details are not publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Logistics Agency Procurement
Chemical and Material Supply Contracts
Department of Defense Industrial Operations

Risk Flags

Potential supply chain vulnerability
Limited transparency on specific chemical composition

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.0 million to CALCA SOLUTIONS, LLC. 8510614632!BULK HPH STORAGE

Who is the contractor on this award?

The obligated recipient is CALCA SOLUTIONS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $21.0 million.

What is the period of performance?

Start: 2024-05-06. End: 2025-09-19.

What is the specific nature of the 'BULK HPH STORAGE' chemicals being procured, and what are their primary applications within the Department of Defense?

The designation 'BULK HPH STORAGE' is an internal identifier and does not explicitly detail the specific chemicals. 'HPH' could potentially refer to 'High Purity' or a specific handling requirement. Basic inorganic chemicals encompass a wide range, such as acids, bases, salts, and industrial gases. Their applications within the DoD are diverse, including use in manufacturing processes, maintenance, cleaning, water treatment, and potentially as components in munitions or other specialized equipment. Without further clarification from the contracting agency (Defense Logistics Agency), the exact chemical composition and intended use remain unspecified in the provided data. Further inquiry with DLA would be necessary to ascertain the precise nature and application of these chemicals.

How does the pricing of this $21 million contract compare to similar inorganic chemical supply contracts awarded by the DoD or other federal agencies?

Benchmarking the pricing of this $21 million contract requires access to a broader dataset of comparable federal procurements for basic inorganic chemicals. Factors such as the specific chemical composition, purity levels, quantities ordered, delivery locations, and contract type (firm-fixed-price in this case) significantly influence pricing. The fact that this contract was competed under SAP suggests it might be for a less complex or smaller quantity requirement than a full and open competition might handle. A comprehensive comparison would involve analyzing unit prices for specific chemicals, total contract values for similar durations, and the number of bidders involved in comparable solicitations. Without such detailed comparative data, it is difficult to definitively state whether this contract represents excellent, good, or fair value solely based on the total award amount.

What are the key performance indicators (KPIs) or quality assurance measures associated with this contract to ensure the chemicals meet DoD specifications?

The provided data does not explicitly list the Key Performance Indicators (KPIs) or specific quality assurance (QA) measures for this contract. However, for a firm-fixed-price contract involving chemical supplies for the Department of Defense, standard QA practices would likely be in place. These typically include inspection and acceptance testing of delivered materials to verify compliance with specified purity, composition, and packaging standards. The contract likely incorporates clauses from the Federal Acquisition Regulation (FAR) and Defense Federal Acquisition Regulation Supplement (DFARS) related to quality management and inspection. The Defense Contract Management Agency (DCMA) often plays a role in overseeing contractor quality systems and ensuring compliance with contract requirements. Specific details would be found within the contract's Statement of Work (SOW) and associated QA clauses.

What is the historical spending pattern for 'Other Basic Inorganic Chemical Manufacturing' by the Defense Logistics Agency or the Department of Defense?

Historical spending patterns for 'Other Basic Inorganic Chemical Manufacturing' by the Defense Logistics Agency (DLA) and the broader Department of Defense (DoD) are substantial, reflecting the ongoing need for these materials across various military operations and support functions. DLA, in particular, manages a vast supply chain and procures a wide array of chemicals essential for readiness. While specific aggregate spending figures for this precise NAICS code (325180) over multiple years are not directly available in the provided snippet, federal procurement databases (like FPDS or SAM.gov) would show consistent annual expenditures in the hundreds of millions, if not billions, of dollars across the DoD for chemical supplies. This spending fluctuates based on operational tempo, modernization programs, and inventory management strategies. This $21 million award represents a single component within that larger, consistent demand.

What is the track record of Calca Solutions, LLC in fulfilling federal contracts, particularly those involving chemical manufacturing or supply?

Assessing the track record of Calca Solutions, LLC requires examining their past performance on federal contracts. Publicly available data, such as through the Federal Procurement Data System (FPDS) or the System for Award Management (SAM.gov), would reveal their contract history, including award amounts, agencies served, contract types, and performance ratings if available. A review would focus on identifying any prior awards for similar chemical products, the timeliness and quality of their past deliveries, and any instances of contract disputes, terminations, or performance issues. Without direct access to this historical performance data, it's impossible to provide a detailed assessment of Calca Solutions, LLC's reliability and expertise in fulfilling federal contracts, especially those within the chemical manufacturing sector.

Industry Classification

NAICS: Manufacturing › Basic Chemical Manufacturing › Other Basic Inorganic Chemical Manufacturing

Product/Service Code: FUELS, LUBRICANTS, OILS, WAXES

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 960 I 10 SERVICE RD, WESTLAKE, LA, 70669

Business Categories: Category Business, Foreign-Owned and U.S.-Incorporated Business, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations

Financial Breakdown

Contract Ceiling: $20,996,145

Exercised Options: $20,996,145

Current Obligation: $20,996,145

Actual Outlays: $2,741,429

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE60121D1513

IDV Type: IDC

Timeline